More dollars are shifting from TV to digital video, in search of greater impact and measurability.

1. Augustine Fou- 1 -
Shifting Ad Dollars
from TV to Digital Video
Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
April 2014

2. Augustine Fou- 2 -
Ad Spending Video vs TV
Source: IAB Custom Study April 2014

3. Augustine Fou- 3 -
If Digital Video Spending Will Increase
Where Funding Will Come From
Source: IAB Custom Study April 2014
Source of Funding

4. Augustine Fou- 4 -
Where are video ad budgets coming from? TV, print, and display ad budgets
An October 2013 survey
from Adap.tv and Digiday polled digital and
marketing professionals to get a bead on the
state of the video ad industry. They found that
online advertising budgets were most often
growing at the expense of TV broadcast
budgets, according to brands. In fact, 31% of
brands that responded were planning to shift
their advertising budgets away from broadcast
television and into online video, while 30%
planned to take money away from display
advertising for online video.
Video Ad Budgets from ...
Source: Adap.tv and Digiday via MarketingCharts October 2013
33% New budget
31% From Broadcast TV
30% From display ad budgets

5. Augustine Fou- 5 -
Video Ads Better than TV Ads
• Video ads have 2x message
recall than TV ads
• Video ads have 2x brand
recall
• Video ads are 50% more
likeable
• Video ads have 50% more
general recall
Source: IAB/Nielsen via
AdWeek May 2013

6. Augustine Fou- 6 -
Perceptions of Video Ads
Source: BrightRoll via eMarketer May 2013
Agency execs correctly perceive
video ads to be most comparable
to display ads and TV ads (for
branding purposes)

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TV Ad Load
23 - 32%

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Network TV Ad Load
30% ads
• For every 30 minute episode,
there are about 9 mins of ads (or
10 – 12 ads ) – used How I Met
Your Mother as proxy
32% ads
• For every 60 minute episode,
there are about 19 mins of ads (or
20 – 24 ads ) – used 24 as proxy

9. Augustine Fou- 9 -
Cable TV Ad Load
23% ads
• For every 30 minute episode,
there are about 7 mins of ads
(or 8 – 9 ads ) – used
Spongebob Squarepants as
proxy
30% ads
• For every 60 minute episode,
there are about 18 mins of ads
(or 16 – 18 ads ) – used In
Plain Sight as proxy

10. Augustine Fou- 10 -
Viewers Skipping
Exactly All TV Ads

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DVR Owners Watch 23m
Source: Nielsen Dec 18, 2013
DVR owners watch 23 mins
of 30 minute episodes
Source: Netflix

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DVR Penetration 7 in 10
Source: LRG via MarketingCharts Dec 2013

13. Augustine Fou- 13 -
Video Ad Load
3%

14. Augustine Fou- 14 -
Video Minutes and Ads
Source: comScore June 2013
Viewers watched 1,250
minutes of online video in
May 2013 (20.8 hours/mo or
42 mins per day)
Video ads accounted for 27.9
percent of all videos viewed
and 2.6% of all minutes spent
viewing video online

15. Augustine Fou- 15 -
9.4 ads per video for long form videos of 20+ minutes
1.3 ads per video for videos of 5-20 minutes
0.66 ads per video for videos of <5 minutes
Number of Ads per Video
Source: tnooz.com Feb 2013

16. Augustine Fou- 16 -
Video Ads Reach/Frequency
Source: comScore, Dec 2013 via MarketingCharts
Nov 2013 reach = 56%
frequency = 155 ads /mo

17. Augustine Fou- 17 -
Related Articles
State of Online Video Ads
By: Augustine Fou, December 2013
Why Digital Kicks Traditional
By: Augustine Fou, March 2012
Video Ads Destroy TV Ads
By: Augustine Fou, April 2012
Mythbusting Advertising
By: Augustine Fou, June 2012
Viewability of TV Ads vs Digital Video
By: Augustine Fou April 2014
Augustine Fou- 17 -
Effectiveness of Digital Ads
By: Augustine Fou, March 2014
How Click Fraud Works
By: Augustine Fou, November 2013
How Video Ad Fraud Works
By: Augustine Fou, February 2014
The Biggest Lies of TV Advertising
By: Augustine Fou, May 2012

18. Augustine Fou- 18 -
Dr. Augustine Fou – Digital Consigliere
“I advise clients on optimizing
advertising across all channels. Using
insights and fast-feedback loops from
digital, we can not only target brand ads
better, but we can shift towards more
detailed measurement and ROI.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
@acfou
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LinkedIn: http://linkd.in/augustinefou